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RSG - Resource Generation Limited - Consolidated financial statements for the
year ended 30 June 2011
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
Share code on the JSE Limited: RSG
Share code on the Australian Stock Exchange: RES
ISIN Code: AU000000RES1
("Resgen" or "the Company")
Consolidated financial statements for the year ended 30 June 2011
ASX/JSE Release
Resource Generation Limited today released its consolidated financial statements
for the year ended 30 June 2011.
The financial statements were approved by the Board of Directors and signed by
Paul Jury (Managing Director). The financial statements have been audited by
Deloitte Touche Tohmatsu.
The full set of financial statements are available on Resource Generations
Limited`s website. www.resgen.com.au
Extracts from the financial statements for the year ended 30 June 2011 may be
found below.
Sydney, Australia
24 August 2011
Contacts
Paul Jury, Managing Director on +61 2 9376 9000 or
Steve Matthews, Company Secretary on + 61 2 9376 9000
Media enquiries
Anthony Tregoning + 61 2 8264 1000
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited
Resource Generation has coal interests in South Africa and Tasmania.Its current
priority is to develop its resources in the Waterberg region of South Africa.
Preliminary Final Report
Year Ended 30 June 2011
30 June 11 30 June 10
$ `000 $ `000
Revenue from continuing operations 1,235 982
Loss from continuing operations (5,072) (3,280)
Adjustment for investment diminution 654 56
Headline earnings (4,418) (3,224)
EPS (cents) (2.3) (2.2)
Headline earnings EPS (cents) (2.0) (2.1)
Commentary
The operations of the Company showed a loss for the period of $5.1 million.
The operating loss comprises the following:
$m
Expenses not capitalised 1.3
Development expenditure 0.7
Non-cash accounting adjustments: 3.1
Share based compensation
Operating Loss 5.1
Additional Information
Net tangible assets per share: 51 cents (30 June 2010: 54 cents).
No dividends were paid or proposed to be paid to members during the financial
year.
Further information regarding Resource Generation and its business activities
can be obtained by visiting the Company`s website at www.resgen.com.au.
Paul Jury
Managing Director
24 August 2011
Statements of comprehensive income
For the year ended 30 June 2011
Consolidated
2011 2010
$`000 $`000
Revenue from continuing operations 1,235 982
Administration, rent and corporate (1,263) (847)
Depreciation of property plant and equipment (111) (92)
Development expenditure (654) (56)
Employees benefits expense (762) (302)
Land management (359)
Share based compensation (3,144) (2,965)
Loss before income tax (5,058) (3,280)
Income tax expense (14) -
Loss from continuing operations (5,072) (3,280)
Loss for the year (5,072) (3,280)
Other comprehensive income
Exchange differences on translation of
foreign operations (net of tax) (264) (88)
Total comprehensive income (5,336) (3,368)
Loss is attributable to:
Owners of Resource Generation Limited (5,072) (3,280)
Total comprehensive income for the year is attributable to:
Owners of Resource Generation Limited (5,336) (3,368)
Earnings per share for loss from continuing operations attributable to the
ordinary equity holders of the company
Basic earnings per share (2.3) (2.2)
Diluted earnings per share (2.3) (2.2)
Balance sheets
As at 30 June 2011
Consolidated
2011 2010
$`000 $`000
Current assets
Cash and cash equivalents 25,326 6,088
Trade and other receivables 950 1,693
Deposits and prepayments 15 16
26,291 7,797
Non-current assets
Property, plant and equipment 33,888 22,951
Mining tenements and exploration 68,302 61,423
Deposits and receivables 11,046 -
113,236 84,374
TOTAL ASSETS 139,527 92,171
Current liabilities
Trade and other payables 818 1,582
Provisions 179 147
997 1,729
Non-current liabilities
Royalties payable 3,452 3,926
Borrowings 926 -
4,378 3,926
TOTAL LIABILITIES 5,375 5,655
NET ASSETS 134,152 86,516
Equity
Contributed equity 148,615 95,945
Reserves 20,063 20,025
Accumulated losses (34,554) (29,482)
Total parent entity interest 134,124 86,488
Non-controlling interest 28 28
TOTAL EQUITY 134,152 86,516
Consolidated statements of changes in equity
For the year ended 30 June 2011
Attributable to owners of Resource Generation Limited
Contributed Reserves Retained Total
Equity earnings
$`000 $`000 $`000 $`000
Balance at 1 July 2009 65,376 18,012 (26,202) 57,186
Non controlling interest 28
Loss for the year - - (3,280) (3,280)
Other comprehensive
income for the year -
exchange differences
on translation of
foreign operations
(net of tax) (88) (88)
Total comprehensive
income for the year - (264) (5,072) (5,336)
Transactions with
owners in their
capacity as owners:
Contributions of
equity, net of
transaction costs 52,670 - - 52,670
Employee share options
-value of employee
Services - 302 - 302
52,670 302 - 52,972
Balance at 30 June
2010 148,615 20,063 (34,554) 134,152
Cash flow statements for the year ended 30 June 2011
Consolidated
2011 2010
$`000 $`000
Cash flows from operating activities
Receipts from customers (inclusive of
government charges) - 44
Payments to suppliers and employees
(inclusive of government charges) (2,176) (1,175)
Payments for land management (369) -
Interest received 1,023 990
Interest paid (16) (6)
Taxation payments (14) -
Payments for mineral tenements and
Exploration (610) (56)
Net cash outflow from operating activities (2,162) (203)
Cash flows from investing activities
Payments for land, property, plant
and equipment (10,122) (22,738)
Refunds/(payments) for government
charges associated with land acquisition 667 (1,435)
Payments for mining licence deposit (2,553) -
Payments for mineral tenements and
Exploration (6,823) (4,236)
Payments for investment in subsidiary (726) -
Net cash outflow from investing activities (19,557) (28,409)
Cash flows from financing activities
Proceeds from issue of shares 51,614 30,875
Equity raising costs (1,743) (1,264)
Loan to BEE partner (8,330) -
Net cash inflow from financing activities 41,541 29,611
Net increase in cash and cash equivalents 19,822 999
Cash and cash equivalents at the beginning
of the year 6,088 5,090
Effects of exchange rate movements on cash
and cash equivalents (584) (1)
Cash and cash equivalents at the end of
the year 25,326 6,088
1 Summary of Significant Accounting Policies
The principal accounting policies adopted in the presentation of the
consolidated financial statements are as set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated. The
financial statements are for the consolidated entity consisting of Resource
Generation Limited and its subsidiaries.
a.) Basis of preparation
This general purpose financial report has been prepared in accordance with the
Australian Accounting Standards, other authoritative pronouncements of the
Australian Accounting Standards Board including Interpretations and the
Corporations Act 2001.
It is recommended that this financial report is read in conjunction with any
public announcements made by Resource Generation Limited during the year, in
accordance with continuous disclosure requirements arising under the
Corporations Act 2001.
Compliance with IFRS
The financial report of Resource Generation Limited also complies with
International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB").
Financial statement presentation
The Group applied AASB 101 Presentation of Financial Statements which became
effective on 1 January 2009. The revised standard requires the separate
presentation of a statement of comprehensive income and a statement of changes
in equity. All non-owner changes in equity must now be presented in the
statement of comprehensive income. As a consequence, the group had to change the
presentation of its financial statements. Comparative information has been re-
presented so that it is also in conformity with the revised standard.
Historical cost convention
These financial statements have been prepared under the historical cost
convention, except for certain non-current assets and financial instruments that
are measured at revalued amounts or fair value, as explained in the accounting
policies below.
Critical accounting estimates
The preparation of financial statements in conformity with AIFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Group`s accounting
policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the financial
statements, are disclosed separately.
New accounting standards and interpretations
The following new accounting standards and interpretations have been adopted in
the current reporting period. The Group`s assessment of the impact of these new
standards and interpretations is set out below.
(i) Amendments to AASB 7 The amendments clarify
"Financial Instruments Disclosure" the required level of
(adopted in advance of effective disclosure about credit
date of 1 January 2011) risk and collateral held
and provide relief from
disclosures previously
required regarding
renegotiated loans.
The adoption of this standard
did not have an impact on the
financial statements.
(ii) Amendments to AASB 5 "Non- Per the clarification in
current Assets Held for AASB 2009-5 the
Sale and Discontinued Operations" disclosure requirements
in standards other than AASB 5
do not generally apply to non-
current assets as held for
sale and discontinued
operations. The adoption of
this amendment did not have an
impact on the financial
statements.
(iii) Amendments to AASB 101 The amendments clarify
"Presentation of Financial that an entity may
Statements" (adopted in choose to present the
advance of effective date required analysis of
of 1 January 2011)items of
other comprehensive income
either in the statement of
changes in equity or in the
notes to the financial
statements. The adoption of
this amendment did not have an
impact on the financial
statements.
(iv) Amendments to AASB 107 The amendments specify
"Statement of Cash Flows"that
only expenditures that result
in a recognised asset in the
statements of financial
position can be classified as
investing activities in the
statement of cash flows.
Consequently, cash flows in
respect of development costs
that do not meet the criteria
in AASB 138 "Intangible
Assets" for capitalisation as
part of an internally
generated intangible assets
have been reclassified from
investing to operating
activities in the statement of
cash flows. The adoption of
this standard resulted in a
reclassification of prior year
development expenditure
written off.
4. Segment information
4.1 Description of segments
Management has determined the segments based upon reports reviewed by the Board
that are used to make strategic decisions. The Board considers the business from
both a business and geographic perspective.
Business segments
The Company has coal interests in South Africa and Tasmania and uranium
tenements in Cameroon. The main priority is to develop its coal resources in the
Waterberg region of South Africa. Management has determined mining tenements and
exploration and corporate to be the critical reportable segment. Corporate,
including equity raisings and administration costs, is indentified as a separate
segment for reporting purposes.
There were no transactions in relation to Cameroon for the current year and no
assets or liabilities are held in relation to Cameroon.
4.2 Segment revenues and results
Segment Revenue Segment Profit
30/6/11 30/6/10 30/6/11 30/6/10
2011 $`000 $`000 $`000 $`000
Mining
tenements
and exploration 606 562 (731) 341
Corporate 629 420 (4,341) (3,621)
Total for
Continuing
Operations 1,235 982 (5,072) (3,280)
Segment revenue is primarily interest income.
The accounting policies of the reportable segments are the same as the Group`s
accounting policies described in Note 1. The mining tenements and exploration
segment profit represents the profit earned by that segment without allocation
of central administration costs and directors` salaries, share of profits of
associates, investment income, gains and losses, finance costs and income tax
expense, all of which are included in the corporate segment. This is the measure
reported to the chief operating decision maker for the purposes of resource
allocation and assessment of segment performance.
4.3 Segment asset and liabilities
2011 2010
$`000 $`000
Segment assets
Mining tenements and exploration 117,932 88,190
Corporate 21,595 3,981
139,527 92,171
Segment liabilities
Mining tenements and exploration 4,890 5,328
Corporate 485 327
5,375 5,655
4.4 Other segment information
Depreciation and Additions to non-current
Amortisation assets
Segment Revenue Segment Profit
30/6/11 30/6/10 30/6/11 30/6/10
$`000 $`000 $`000 $`000
Mining tenements
and exploration 28 21 11,033 22,731
Corporate 83 71 15 7
Total 111 92 11,048 22,738
4.5 Geographical information
Revenue from Non-Current assets
External customers
30/6/11 30/6/10 30/6/11 30/6/10
$`000 $`000 $`000 $`000
Australia 629 420 86 155
South Africa 606 562 113,150 84,219
Total 1,235 982 113,236 84,374
Events occurring after the reporting period
There were no events occurring after balance date that have not been reflected
in the financial statements.
Date: 24/08/2011 16:20:11 Supplied by www.sharenet.co.za
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